In this video you will learn how to manage prices in Webround, manage gross and net amounts and how the different delivery methods in Webround ensure every user pays the right amount at checkout while staying compliant with any tax zone you intend to sell to.
Transcription
Adding Prices to Products
Now that our product is created, we want to add a price to it. It is very important to remember that you can only define prices on variants.
Click on the name or the arrow of the desired product to access its variants. Take the variant you want to define a price for and click on the edit button. In the price section, click add price. You can define different information like the price, the compare price, or the billing frequency. Use the compare price to display discounts and use the billing frequency to define how many times the billing happens for this purchase. If you define a billing frequency different from one time, you will create a subscription on this product. For now, let's keep things simple with one-time payments.
Prices in Webround are always net. This means that when you save a price in this form, Webround will treat this data as the net price. To simplify data entry, Webround supports two modes with a VAT simulation tool. Let's simulate a standard Italian VAT rate of 22%. The fields now show hints that indicate the actual gross price at that simulated rate based on the value you inserted. This is useful when you want to enter net prices directly.
If you want to enter gross prices instead, use the switch to enter the gross price. You will still be saving the net price into the database, but you can be sure that the final gross price in the store will precisely reflect the one you are entering here. Set the price as default and click save. As you can see, the price is now shown for the variant entry in the table, but we still have a 0% VAT rate.
Tax Zones
Webround uses tax zones to correctly define price increases according to the location of the customer visiting your store. Go to the tax zone entry in the side menu to see all the tax zones you have defined for your store. To make this work correctly, you must specify a tax zone for every single country you intend to sell to, and every product or variant must be explicitly linked to those specific tax zones.
Please keep in mind that tax zones use geolocalization while a user is browsing the store. While the checkout applies a more complex logic to determine the actual position of the customer completing the purchase. Let's suppose you have a tax zone defined for Italy. When an Italian customer visits your store, they will see Italian VAT rates applied to the prices of your products.
However, if this user proceeds to the checkout for a shippable product, the tax zone applied to the price will be determined strictly by the country of the shipping address specified by the user. If there is no tax zone available for that specific shipping country, or if that tax zone is not linked to the product being purchased, the system will process the order using the base net price.
Delivery Methods
This means that when a user starts to check out and requests shipping to a location that does not have a valid, linked to the VAT rate specified for the product, the net price will be the final amount paid by that customer. Once you create a tax zone, go back to your products and edit the desired one.
In the product form, reach the tax zones connector. Here, you'll find all the tax zones defined in your store and you will be able to pick the one you want to apply to the product. Click on the yellow check box and select the item. Finally, click Save, refresh all product information and navigate to the variants.
You can clearly see that the price is showing the preview of the gross amount that will be shown to Italian customers. Let's also add a note regarding the different delivery methods. Webround supports four distinct delivery methods, which are pickup, shipping, digital, and none.
The pickup method should be used whenever you want your customers to visit your physical location and collect the product manually. This is an excellent option when you want to support both standard shipping and manual pickup for local customers. When a customer selects the pickup delivery method, Webround will always apply either the default tax zone or the default tax rate linked to the product.
The shipping method is the standard choice for e-commerce stores that need to deliver physical products to their customers. In this scenario, Webround utilizes the country of the shipping address to determine exactly which tax rate should be applied at checkout.
The digital delivery method is tailored specifically for digital products that require delivery via e-mail, such as download links or digital keys. It is important to note that the digital delivery method requires the use of Stripe products. This means you must define a Stripe product ID and a Stripe price ID before a customer can proceed to checkout. Consequently, you will need to manually create that specific product within your Stripe dashboard first and ensure that Stripe Tax is enabled. If you prefer to manage digital deliveries entirely within Webround without relying on Stripe infrastructure, you can simply use the None delivery method.
In this case, Webround will collect at least two proofs of residency before proceeding to the checkout to ensure that the correct tax rates are applied. When using the non-delivery method, Webround matches the country of the user's internet connection with the country of the billing address entered before checkout.
If the connection country matches the billing address country and there is a tax zone linked to the product for that specific country, Webround will apply it at precise tax zone. However, if the connection country differs from the billing address country, Webround will fall back and apply either the default tax zone or the default tax rate of the product.
Finally, if there is no default tax zone linked to the product and you have not specified a default tax rate for it, Webround will safely process the checkout using the base net price.